Investors Snatch Up Chinese Shares

11/5/2012 5:22AM

The Hong Kong-listed shares of some Chinese companies are drawing attention. The WSJ's Jake Lee talks about why some Chinese stocks outperform in Hong Kong and why investors see this as a buying opportunity.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... overseas ... at least once ... when investors looking at ... listed Chinese companies ... welcome to Asia today I'm unique in ... joining me now is Asia Markets Editor Jake Lee ... take ... so much for joining us today ... so we seen this phenomenon ... Hong Kong listed Chinese companies ... going not where I think ... that investors are ... starting to shun equities what these years writes pretty strange divergence in the outside China seems to stings one post about the place ... for years been built by concerns about the economy ... finally racing patient Shays ... of economies and booked him out of my PC recovery the split score transition can be more to value ... in the private calming down on that they expect that the might use maybe ... of course teaches at this huge ... love of money from ABC's for the QE three from the Fed's action from the Europe action ... all that's good for Chinese stocks is so hard to get into China so what are they do it by the Chinese stocks in Hong Kong it's an easy place to get an hour so ... we seen a rally in Hong Kong still not see much happening in China that people still reading the pain from Chinese stocks coming down say much inside the country ... so it's a very strange time of them and we seen this huge divergence on peoples of the Brook and is quite an opportunity now ... that you talk about the conversion but the divergence that ... out what the levels are we talking about here shows in all it is the preening on Chinese stocks East Ju listed Chinese stocks traded in the mainland China Shenzen or SHANGHAI ... A Mendelssohn on call ... he is a premium on the Chinese stocks in China because it just a few investing options that people have to buy something that by the stocks ... in Hong Kong Beastie cheap ... but now he's he's Hong Kong stocks come much more expensive than China up to about two percent as a very unusual that that that is the case ... in previous years using chai still has much is twice as expensive as Hong Kong ... to the Hong Kong to be more expensive is a very un usual and people expecting this is so the moment is very unusual for the month while the last fifteen twenty stocks might stop and back up but for now it's a big discount to Chinese shares in China ... what we saw Asian markets coming down a little bit today on the sea there's ... really too big and then party leader this week the U S elections in the Chinese ... China's Party Congress what kind of our issues our investors looking at specifically for markets in the later this week show we got the right to the defense markets pretty and in that in all things cute UMass reveal lies on the U S presidential elections in India on Isaac and the Romney ... I mean ... it's an ARIA is in every way so that disagreeing about ... the booking may speak to Treasurys what it means that every scene at an Obama victory perhaps people going back into Treasurys he said he's gonna keep rates at opening his his favorite Sentra banks hammock ... so that will be good news for Treasurys cube is you let ... it roam the gets a big chicken was saying look he spends the more business friendly ease that might mean matches will get more into yuan at risk assets at the expense of Treasurys ... and just remember what heading into this big fiscal cliff at the end of the year ... of people think Romney might be up to come back but said it was not longer to a bomb was struggling with trying to increase the that that seating for the US the recent whisk report markets worldwide ... and this worries that could happen again under an Obama presidency ... so to get Treasury's a market that is the source of stars you might see ... up but is looking set in place and and for that to to place to call the business ties we can see I am planning on TV he did that ... right not to the gas market this week